IMPORTANT INCOME TAX CASE LAW 16.10.2025 Section Case Law Title Brief Summary Citation Relevant Act Section 10(1) Deputy Commissioner of Income-tax v. Vibha Agrotech Ltd. Income derived from the sale of foundation seeds by a company engaged in hybrid seed business was held exempt under Section 10(1) as agricultural income. Click Here Income-Tax Act, 1961… Read More »
TDS Credit Must Be Granted to the Assessee Who Offers the Income to Tax. Issue Can a legitimate claim for TDS credit be disallowed by the Centralized Processing Centre (CPC) merely because of a mismatch in Form 26AS, which occurred due to the deductor’s error of quoting the PAN of a predecessor entity, even when… Read More »
80-IB Deduction Denied as Assessee Fails to Prove Actual Development Work with Evidence. Issue Can an assessee claim a deduction under Section 80-IB(10) for developing a housing project based solely on a joint venture agreement and the declaration of profits, without providing any direct evidence (like books of account, bills, and vouchers) to prove that… Read More »
An addition for cash deposits is invalid when the assessee provides a complete documentary trail explaining the source, which the revenue fails to rebut. Issue Can an addition be sustained under Section 69A for cash deposits when the assessee provides substantial documentary evidence to prove that the funds were temporarily deposited by a third party… Read More »
Deduction Under Section 54 Allowed as Payment Was Proven by Sale Deed and Bank Records. Issue Can an Assessing Officer (AO) validly disallow a deduction under Section 54 for the purchase of a new residential property on the ground of non-disclosure of the payment mode, even when the taxpayer provides substantial documentary evidence, including a… Read More »
AO Must Investigate Land Use Before Restricting Section 54F Exemption. Issue When an assessee purchases a large plot of land and constructs a small dwelling unit on it, can the Assessing Officer (AO) restrict the capital gains exemption under Section 54F to a “reasonable” portion of the land without conducting a detailed factual inquiry into… Read More »
A deduction for prior-year unpaid liabilities is allowed under Section 43B, but only to the extent that the assessee can furnish concrete proof of payment. Issue Is an assessee entitled to claim a deduction under Section 43B for statutory liabilities (like Service Tax, TDS, PF) that were disallowed in a previous assessment year, and what… Read More »
A trust’s income must be assessed under Sections 11-13 once its tax registration is restored. Issue Once a charitable trust’s registration under Section 12A is restored by an appellate authority, must the Assessing Officer (AO) assess its income according to the special provisions for trusts, or can the additions made on the basis of the… Read More »
Income from the sale of foundation seeds qualifies as agricultural income and is exempt from tax. Issue Whether income derived from the production and sale of foundation seeds can be classified as “agricultural income” and thus be eligible for exemption under Section 10(1) of the Income-tax Act. Facts The assessee, a company involved in the… Read More »
IMPORTANT GST CASE LAWS 16.10.2025 Section Case Law Title Brief Summary Citation Relevant Act Section 6 Tansam Engineering and Construction Company v. Commissioner, CGST and Central Excise, Rourkela When State GST authorities initiate proceedings (issuing a DRC-01A or SCN) for wrongful Input Tax Credit (ITC) under Section 74, Central GST authorities are barred from taking… Read More »